With the new regulations not in effect until 18 April, Telsa can...

With the new regulations not in effect until 18 April, Telsa can still sell its Model3 with a full $7,500 credit until this change. For a small post implementation period of time Treasury allowed the credit for EV's made in the US but with foreign sourced batteries.

From 18 April 2023 the 50% of the battery needs to manufactured or assembled in America. The USA sales of Model 3 use a Chinese sourced battery so will fail this rule when implemented. This cancelling of the $7,500 credit isn't the foreign entity of concern rules but will provide an opening insight to Tesla as to what difference in sales a $7,500 price change makes.